Palmetto, Fla.–Condo Capital Solutions has purchased the 53 remaining units at Bel Mare Condominiums at Riviera Dunes, a 124-unit condominium property in Palmetto, Fla. for an undisclosed price, and the condo turnaround company is looking for more acquisition opportunities in the Sunshine State.
Condominium sizes at the property range from two to four bedrooms, and are located on 32 acres on the Manatee River on Florida’s West Coast. Originally priced from $435,000 to $1.4 million, the remaining residences are now priced from $140,000 to $770,000.
Condo Capital Solutions purchased the 53 remaining condos by a foreclosure note in December of last year, and said it is fully committed to funding the homeowners’ association for the units it owns, and will add an additional $50,000 to the association to improve its financial stability.
While hearing the words “Florida condominium” could cause many investors to break out in a cold sweat, Condo Capital Solutions sees long-term opportunity where others see trouble. The firm said it wants to spend an additional $250 million in condominium and residential projects in Florida before the end of 2012.
“Florida will come back,” says Peter Wells, a principal with the company. He concedes that the state’s condo market is “way overbuilt,” but also notes some factors in Florida’s favor, such as a growing amount of Baby Boomer retirees that will likely want to relocate there, and pleasant weather.
“We want to acquire properties that meet market demand, and have something that we feel we can turn around,” Wells says. A large number of apartment-to-condominium conversions in the state “shouldn’t have taken place,” he says, and the company looks for properties that differentiate themselves, perhaps a waterfront location. Additionally, the company wants to own condominiums that will appeal to more than one group, such as the local community and out-of-towners looking for a second home. Properties where individual buyers can access FHA, Fannie Mae or Freddie Mac financing are also targeted.
The company is well-capitalized to execute its plan, as Wells revealed that the company sold all of its condominium holdings in 2005 and 2006.
“We’re nimble, and we’re liquid,” he says, adding that the company will also execute an apartment acquisition strategy over the next 18 to 24 months.